Methods of quantitative and qualitative analysis of...

Methods of quantitative and qualitative analysis of cash flows

Quantitative analysis of cash flows

This analysis can be carried out by direct and indirect methods. The main source of information for the analysis of the general structure of cash flows is the direct cash flow statement in which cash inflows and outlays are presented in the context of current, investment and financial activity.

As a result, the organization actually has a calculated net inflow (outflow) of cash (cash reserve) as the difference between all receipts and cash outflows. Numerically, it will be equal to the increase (decrease) in cash for the analyzed period.

Analyze the flow of funds direct method. The analysis is carried out using analytical tables (Table 7.3-7.5)

Table 7.3

Analysis of outflow and inflow of funds by type of activity

No.

pp

Metric

Activity

Total

Current

Investment

Financial

Previous period

1

Received cash

3,406,944

170,186

663,746

4 240 876

2

Cash out

3,085,399

455 116

699,033

4,239,548

3

Total (item 1 - item 2)

321 545

-284 930

-35 287

1328

Reporting period

4

Received cash

6,410,225

111 502

530,985

7,052,712

5

Cash out

6,173,064

380,447

499,974

7,053,485

6

Total (item 4 - item 5)

237 161

-268 945

31 011

-773

Table 7.4

Structure of Funds Receipts

Income

Amount, thousand rubles.

Specific weight in all receipts, %

Changes

Previous

Reporting

Previous

Reporting

Thousand. rubles.

in%

1. From Current Activities

3,406,944

6,410,225

80.34

90.89

3 003 281

88.15

2. From investment activities

170,186

111 502

4.01

1.58

-58 684

-1.72

3. From financial activities

663,746

530,985

15.65

7.53

-132 761

-3,90

4. Total

4 240 876

7,052,712

100

100

2 811 836

82.53

Table 7.5

Organization's payment structure

Dropped out

Amount, thousand rubles.

Specific weight in all disposals,%

Changes

Previous

Reporting

Previous

Reporting

Thousand. rubles.

in%

1. From Current Activities

3,085,399

6,173,064

72.78

87.52

3,087,665

100.07

2. From investment activities

455 116

380,447

10.74

5.39

-74 669

-16.41

3. From financial activities

699,033

499,974

16.49

7.09

-199 059

-28.48

4. Total

4,239,548

7,053,485

100

100

2,813,937

66.37

The majority of receipts and expenditures of monetary funds in the analyzed organization (more than 90%) occur according to current activity, with the increase increased by 88%, and the expenditure of funds by 100% (twice). Income and payments on investment and financial activities tend to decrease. At the same time, net cash flow in the previous period was positive, and in the reporting period - negative, which is associated with the outpacing growth in costs (payments) over the growth in sales revenue.

It is worth noting that the company's cash flow statement is prepared by a straightforward method, which allows us to more objectively assess the company's cash flow, as it assumes a continuous accounting of all cash flows of the organization. At the same time, its lack consists in the absence of an interrelation between the profit of the organization and the solvency, which, on the contrary, is disclosed with the help of an indirect method. The essence of the indirect method is to adjust the net profit indicator to metrics (or change metrics) that are not followed by the real cash flow: accrued amortization of intangible assets and fixed assets for the year, financial results from other activities, changes in the value of assets and liabilities associated with current activities. It should be noted that there are no uniform methods of calculating cash flow by an indirect method, which are mandatory for all enterprises.

Cash flow by current activity (DC) can be calculated by the formula

DP = net profit + amortization of intangible assets and fixed assets for the year - balance of other income and expenses - change in inventories - change in the amount of short-term accounts receivable + + change in the amount of short-term accounts payable, the amount of deferred revenue and reserves of future expenses and payments

Thus, to obtain the balance of cash flow in connection with the main activity, the net profit is added to all costs not related to the payment of cash, and primarily depreciation, and deducted from net profit, the articles leading to an increase in assets or a reduction liabilities (increase in accounts receivable, decrease in accounts payable), and articles that lead to an increase in liabilities and a decrease in assets (increase in accounts payable) are added.

The economic meaning of this calculation is as follows. When buying, for example, materials or making financial investments, the organization spends money from the current account. Consequently, an increase in inventories or financial investments leads to a decrease in cash, so this value should be deducted from net profit. In liabilities, the picture is reversed: when a loan is received, the amount of money on the settlement account is increased, i.е. the increase in the amount of loans should be added to the net profit, and when the loan is repaid, money is spent. Therefore, the amount of reduction in loan debt must be subtracted from net profit.

Thus, articles that lead to an increase in assets or a decrease in liabilities (an increase in accounts receivable, a decrease in accounts payable) are deducted from net profit, and articles that increase liabilities and reduce assets (increase in accounts payable) are added.

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It should be noted that when analyzing these indicators only on reporting, a problem arises if non-monetary transactions are used. Then the organization receives income or expenditure, which is not always worth the movement of money, because payments are not made in cash, but in the form of goods.

The result of cash flow or net cash flow (DDP) can be reduced by the amount of dividends (D) paid to shareholders:

DDP = DP-D.

The gross cash flow indicator (VAR) is equal to the sum of the indicator of cash flow, income tax, income tax and property tax (H):

VDP = DP + H.

In addition, based on the indirect method for analyzing the effectiveness of the organization's activities, profitability indicators based on cash inflows for the analyzed period can be calculated.

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